IBM Shares Gain the Most in a Year
International Business Machines Corp (IBM) said last week that its chief executive Ginni Rometty would step down in April and be succeeded by Arvind Krishna, the head of its cloud business.
IBM shares closed higher for the fifth time in the last ten trading sessions in New York on Friday. It has also been the sharpest daily increase since January 23rd 2019. The stock rose 5.09% ($6.96) to $ 143.73, after touching an intraday high at $ 144.00, or a price level not seen since January 23rd (enero 144.41).
Shares of International Business Machines are up 7.23% so far in 2020 compared to a 0.16% drop for the benchmark, S&P 500 (SPX) index.
In 2019, IBM shares rose 17.92%, thus underperforming the S & P 500, which posted a gain of 28.88%.
Arvind Krishna has a bachelor’s degree from the Indian Institute of Technology in Kanpur and a Ph.D. from the University of Illinois at Urbana-Champaign.
He joined IBM’s Watson Research in December 1990 and was part of that group until July 2009. Then, in 2013, Krishna was appointed as general manager of the development and manufacturing organization of IBM Systems and Technology Group.
In August 2019, in an interview with Business Insider, Krishna said he expected the hybrid cloud market to reach an added value of $ 1.2 trillion in the future.
In another interview with CNN Money last week, he predicted the commercial availability of quantum computers at some point during the current decade.
Analyst’s share price forecast and recommendation
According to CNN Money, 17 analysts, offering 12-month forecasts regarding IBM’s stock price, have an average target of $ 154.00, with a high estimate of $ 173.00 and a low estimate of $ 121.00. The median estimate represents a 7.15% hike compared to the closing price of enero 143.73 on January 31st.
The same media also reported that at least 14 of the 20 surveyed investment analysts had rated IBM shares as “Hold”, while 4 as “Buy”. On the other hand, 2 analysts had recommended selling the shares.